Reflecting on the Growth of Impact Investing

FPO
Community development investing

GIIN’s 2024 State of the Market highlights how the impact investing industry has grown and changed

The impressive growth of impact investing in 2024 reflects a world increasingly attuned to the interconnectedness of financial success and social responsibility. As highlighted in the Global Impact Investment Network’s (GIIN) "State of the Market 2024 Trends, Performance, and Allocations," we witness a landscape where investors are not merely driven by profit but are deeply aware of their influence on societal and environmental outcomes.

Impact investing has been growing at a steady rate, with GIIN’s new report finding that there is a 14% compound annual growth rate in assets under management over the last five years. In our post-pandemic reality, climate change is now at the forefront for many investors eager to make meaningful contributions and create real impact through their investments. Not only that, but turbulence in financial markets, alongside ongoing geopolitical tensions, has led to heightened scrutiny over capital allocation. Understanding how impact investors distribute their resources is essential for navigating this evolving terrain.

Today, investors can easily access platforms that provide a wealth of information on various impact funds and projects. These platforms offer transparency regarding the potential social or environmental benefits of investments, allowing investors to make informed decisions. At Praxis®, we partner with YourStake, to help our investors better understand the impact of investing with Praxis. Moreover, with an increasing number of financial institutions – like Praxis – offering dedicated impact investment products, individuals no longer need to be affluent or institutional investors to participate in this movement.

The growth in impact investing is more than just a financial trend; it underscores a profound shift in our global perspective – a recognition that financial success and social responsibility are deeply interconnected. The findings remind us that we are all part of a larger ecosystem where our investments can drive meaningful change. As industry professionals, we need to continue to engage in conversations about how we can harness this momentum to create sustainable solutions for future generations.

This ease of entry into impact investing empowers more people to contribute toward sustainable development while the goal is to reap a range of financial returns. It’s heartening to see how making a difference is becoming an integral part of the investment journey for many.

At Praxis Mutual Funds, creating real-world impact through investments is at the heart of what we do. With 30 years of impact investing experience, Praxis is excited to see the ways that the impact investing industry continues to grow and evolve to meet the needs of faith-based and values-driven investors. We created our seven ImpactX strategies, which are applied across all of our funds, to demonstrate our commitment to serving investor needs while seeking to effect real-world change.

For more information, please see The GIIN: STATE OF THE MARKET 2024 Trends, Performance and Allocations.


Stella Tai, Stewardship Investing Impact and Analysis Manager | Praxis Mutual Funds
Author Stella Tai
Stewardship Investing Impact and Analysis Manager

Community development investing

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Disclosure

The compound annual growth rate (CAGR) is the mean annual growth rate of an investment over a period longer than one year.

The Fund’s investment strategy could cause the fund to sell or avoid securities that may subsequently perform well, and the application of ESG (environmental, social, governance) and/or faith-based screens may cause the fund to lag the performance of its index.

The Fund’s stewardship investing strategy could cause the fund to sell or avoid securities that may subsequently perform well, and the application of social screens may cause the fund to lag the performance of its index. Mutual fund investing involves risk. Principal loss is possible.